Tax Season Tips

  Tax season 2017 is in full swing. Statistics issued by the IRS showed a 17.2% decline in the total number of returns received through February 10, 2017 compared to the same period last year.  The decline was most likely caused by the mandate on refunds on returns involving the Earned Income Credit and the Read more about Tax Season Tips[…]

Tax Benefits for New Parents

I was blessed with my first two grandbabies this summer! (Stone Alexander and Grace Jenna) While Grammie won’t realize any tax benefits from the birth of these two babies, their parents will become eligible for a whole new set of tax breaks.   Dependents   Claiming your son or daughter as a dependent will shelter Read more about Tax Benefits for New Parents[…]

Mid-Year Tax Planning

Summer is here, 2016 is half over, and it’s a great time to organize your taxes. It seems most of my clients wait until January to look for their records, organize their charitable donations, and review investment accounts.  While it may not be fun to spend a Saturday afternoon in July reviewing your tax records, Read more about Mid-Year Tax Planning[…]

2016 Automobile Mileage Rates

The IRS released the 2016 standard mileage rates for business, medical and moving in December. The rates have decreased from 2015, probably due to the decrease in the cost of gasoline.  Effective January 1, 2016, the standard mileage rates for the use of an automobile are as follows: 54 cents per mile for business miles Read more about 2016 Automobile Mileage Rates[…]

Tax Return For A Deceased Taxpayer

What are the income tax consequences if Grandpa dies on June 30, 2014?  If a taxpayer dies during the tax year, the IRS still expects a tax return to be filed on behalf of the decedent.  In general, it is the executor’s responsibility to ensure the final tax return is prepared and filed. When preparing Read more about Tax Return For A Deceased Taxpayer[…]

Love Letter from the IRS?

What happens if you receive correspondence from the Internal Revenue Service?  In my experience, most taxpayers either panic or they ignore it.  The very worst thing you can do is ignore the letter! Trust me, the IRS won’t magically go away. The folks who ignore the letter are the ones that wind up with a Read more about Love Letter from the IRS?[…]

Things to Know for Tax Year 2014

The IRS announced last week they would be ready to accept 2014 tax returns on January 20, 2015.  This is early in the year considering there have been several changes to the law that will affect 2014 personal income tax returns.  What are some of these changes? Changes Related to the Affordable Care Act Shared Read more about Things to Know for Tax Year 2014[…]

Installment Agreements for Payroll Taxes

If your small business is delinquent on payroll taxes and having problems catching up, you may qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA).  If you owe $25,000 or less you can have up to 2 years to pay your payroll taxes to the IRS. The criteria to qualify for an IBTF-Express Read more about Installment Agreements for Payroll Taxes[…]

Shared Responsibility Payment

Effective for the 2014 tax year, the Affordable Care Act requires all individuals to carry health insurance or make a shared responsibility payment, unless they are exempt. Employer-provided health insurance as well as Medicare and Medicaid will satisfy the individual mandate. How much is the penalty? The shared responsibility payment for 2014 is the greater Read more about Shared Responsibility Payment[…]

Married Filing Joint vs. Married Filing Separately

I’ve always believed married filing separately was never desirable because the tax rates are higher and many tax benefits are not available to those who file separately. However, today when I was working with a client going through a divorce, we compared the two filing statuses and discovered that married filing separately only increased the Read more about Married Filing Joint vs. Married Filing Separately[…]